Innovation Development Strategy using Analytical Hierarchy Process for Startup Enterprise on Agribusiness

Liesa Larasati, Eriyatno Eriyatno


Transfer technology process is found to be major obstacles for agribusiness start-ups. From processing techniques up to digitalization of e-commerce, innovation has affected development efforts for small-scale enterprises. Innovation may arise, but what is technologically possible today will develop slowly because of inertia and socioeconomic limits or restrictions (Godet, 2001). There is very few research has been done to solve the problem on technology adaption by start-ups on agribusiness due to a lack of attention from policymakers. Furthermore, startup companies is considered unique and high-risk. This research used an Analytical Hierarchy Process (AHP) to construct a conceptual model for prioritizing (Saaty, 2005) of innovation policy. Case studies and field observations also be conducted to support the technology transfer (TT) strategy in agribusiness. From AHP analysis, it was found that startup development strategy should focus on capacity building of technical workers involved, cash incentive for innovators, and technology valuation to back up a reasonable licensing contract. Assuring feasibility of the new companies, there must be a financial support system, especially for 1-year working capital and new product marketing campaign. It may use a venture capital scheme or government soft loan program. A case study in 2018–2019 at shallot paste food factory in middle Java-Indonesia showed that during the incubation period, there should be technological and business guidance team to enhance company growth. Facilitators may be provided from TT office functional from universities, consultants, or R and D institutes. Collaboration research is recommended between small and medium enterprises and research agencies to encounter dynamics of consumer preference and quality requirements, related to agriculture commodities. Leadership is the key to the success of the collaboration between the results of research and the market, so it is necessary to implement market orientation by conducting a preliminary market study from the beginning of the research.

Aus. & NewZe J. Soci Busi. Env. Sus. Vol 6(1), April 2020, P 35-43


Innovation; Start-ups; Analytical Hierarchy Process; Agribusiness; Development Strategy

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